Correlation Between TianJin 712 and Zhongtong Guomai
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By analyzing existing cross correlation between TianJin 712 Communication and Zhongtong Guomai Communication, you can compare the effects of market volatilities on TianJin 712 and Zhongtong Guomai and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in TianJin 712 with a short position of Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of TianJin 712 and Zhongtong Guomai.
Diversification Opportunities for TianJin 712 and Zhongtong Guomai
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TianJin and Zhongtong is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding TianJin 712 Communication and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com and TianJin 712 is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on TianJin 712 Communication are associated (or correlated) with Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of TianJin 712 i.e., TianJin 712 and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between TianJin 712 and Zhongtong Guomai
Assuming the 90 days trading horizon TianJin 712 Communication is expected to generate 1.24 times more return on investment than Zhongtong Guomai. However, TianJin 712 is 1.24 times more volatile than Zhongtong Guomai Communication. It trades about 0.25 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about -0.31 per unit of risk. If you would invest 1,735 in TianJin 712 Communication on September 18, 2024 and sell it today you would earn a total of 386.00 from holding TianJin 712 Communication or generate 22.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TianJin 712 Communication vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| TianJin 712 Communication |
| Zhongtong Guomai Com |
TianJin 712 and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TianJin 712 and Zhongtong Guomai
The main advantage of trading using opposite TianJin 712 and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TianJin 712 position performs unexpectedly, Zhongtong Guomai can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| TianJin 712 vs. Industrial and Commercial | TianJin 712 vs. China Construction Bank | TianJin 712 vs. Bank of China | TianJin 712 vs. Agricultural Bank of |
| Zhongtong Guomai vs. China Petroleum Chemical | Zhongtong Guomai vs. PetroChina Co Ltd | Zhongtong Guomai vs. China State Construction | Zhongtong Guomai vs. China Railway Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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